Governor slams Democrats' proposal, says numbers don't add up

Democrats and Republican Gov. Paul LePage moved closer this week toward an agreement on paying Maine's $484 million Medicaid debt to hospitals.

But in his weekly radio address on Saturday, LePage insisted his plan is better, because it's simpler. The governor said the Democrats' plan is difficult to understand, full of legal jargon, budget gimmicks and empty promises.

He would use a revenue bond of $186 million and federal matching funds of $298 million to pay off the debt. The bond would be paid with liquor revenues.

"My plan has no risk to the taxpayer. It will create jobs, pay the hospitals, lower liquor prices for consumers and increase profit margins for Maine retailers," LePage said. "Better still, it will return millions of dollars a year to state coffers."

In the Democratic response, Senate President Justin Alfond of Portland said the issue is not just about debt, it's also about high health care costs. Alfond said the state should accept the federal dollars provided by the Affordable Care Act for Medicaid expansion.

"Democrats have laid out an alternative," Alfond said. "Our plan commits to a swift, upfront payment-in-full to our hospitals, putting to rest our debt obligation by Sept. 30 of this year. It’s a plan that is straightforward and doesn’t assume any risk for the people of Maine."

He called refusing federal money to ensure an additional 70,000 Mainers "fiscally irresponsible and morally wrong."

The Legislature's Veterans and Legal Affairs Committee will hold work sessions on the two competing bills Monday morning in Augusta.

LePage had pledged to veto any bill sent to his desk until his hospital debt legislation was passed. But on Friday, the governor relented and signed an emergency bill allowing bars and restaurants to sell alcohol at 6 a.m. on St. Patrick's Day, which is a Sunday.